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President Obama's risky 'goodwill' gambit

To President Obama, curbing entitlement growth has never been a core priority. | AP Photo

“I think it’s terrible policy, and I also think it’s a terrible negotiation strategy,” said former Massachusetts Rep. Barney Frank, a cranky but reliable Obama loyalist on the Hill during the president’s first term.

“Social Security and Medicare are the two most successful anti-poverty programs in American history,” said Frank — noting that Obama is basically saying that the elderly, living on a fixed income of about $25,000 “are living too rich.”

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“It’s outrageous,” he told POLITICO.

A group of labor and progressive groups, along with Sanders, held an event Tuesday outside the White House gates, delivering a petition of more than 2 million signatures demanding Obama stand firm against cuts to benefits and entitlement programs. The AFL-CIO — which spent millions in 2012 to help elect Obama and other Democrats — called on labor activists to “make some noise” about the cuts in an email to activists over the weekend.

Democratic activists are already threatening to mount primary challenges against any congressional Democrats who publicly back or vote on Obama’s chained-CPI proposal. Democrats — unlike their GOP counterparts — haven’t faced significant intraparty schisms in high profile Senate or House races since liberal activists knocked Sen. Joe Lieberman out of the party in 2006.

The White House is not particularly concerned about the latest round of threats — even as groups like Progressive Change Campaign Committee, Democracy for America, and MoveOn.org insist they are not bluffing.

It’s also unclear whether liberal outside groups — which often eschew the big donor fundraising that fuels mainstream Democrats and Republicans — have the resources to compete in high-profile Senate primaries.

In their last campaign finance reports, PCCC had just over $215,000 cash on hand. MoveOn.org had more than $2.3 million, while Democracy for America had almost $1.4 million through the end of February. That might be enough for one or two Senate races or a handful of House seats, but isn’t the kind of war chest that Americans for Prosperity or Karl Rove’s American Crossroads can assemble

Hickey and other liberal stalwarts aren’t sure whether this is a serious proposal or political posturing by the White House to show Republicans that the president is serious and committed to grand bargain talks. Either way — they’re unhappy about the administration playing games with a program that is one of the cornerstones of the Democratic Party’s identity.